8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


                          Date of Report: July 21, 2004



                               GELSTAT CORPORATION
             (Exact name of registrant as specified in its charter)


          MINNESOTA                     0-21394                 41-1713474
 (State of other jurisdiction    (Commission File No.)        (IRS Employer
      of incorporation)                                   Identification Number)


            1650 WEST 82ND STREET, SUITE 1040, BLOOMINGTON, MN 55431
               (Address of principal executive offices) (Zip Code)


       Registrant's telephone number, including area code: (952) 881-4105

              (Former name, former address and former fiscal year,
                         if changed since last report):



ITEM 5.  OTHER EVENTS

         By press release on July 20, 2004 (See Exh. 99.1, attached), GelStat
Corporation announced a three-for-two stock dividend, payable to shareholders of
record on August 17, 2004.

ITEM 7.  EXHIBITS

         99.1     Press Release dated 7/20/04


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                                   SIGNATURES


      Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

Dated: July 22, 2004                         GELSTAT CORPORATION



                                             By: /s/ Stephen C. Roberts
                                                 -------------------------------
                                                 Stephen C. Roberts, Chief
                                                 Executive Officer (Principal
                                                 executive officer) and
                                                 Authorized Signatory



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EX-99.1

                                                                    Exhibit 99.1

             GELSTAT CORPORATION DECLARES THREE-FOR-TWO STOCK SPLIT

                  Cites Institutional Demand and Future Outlook

MINNEAPOLIS -- July 20, 2004 -- GelStat Corporation (OTCBB: GSAC) today
announced that its Board of Directors has declared a three-for-two stock split.

The three-for-two stock split of the company's common stock will be in the form
of a 50 percent stock dividend. The stock dividend will be distributed on August
31, 2004 to shareholders of record on August 17, 2004. The stock dividend will
represent a tax-free distribution to shareholders.

"The successful nationwide introduction of GelStatTM Migraine into the $2.6
billion OTC headache pain reliever market is a key milestone for the company,
and we are pleased to share this success with our shareholders," said Stephen
Roberts, M.D., chairman and chief executive officer of GelStat. "The stock
dividend reflects our positive outlook for the future. We believe it will
increase the liquidity and distribution of our stock, especially in response to
specific institutional demand."

ABOUT GELSTAT MIGRAINE

GelStat Migraine is a new over-the-counter (OTC, non-prescription) medication
for acute relief from the pain and associated symptoms of migraine and
migraine-like headaches. Over 90 percent of those with migraine use OTC
medications as part of their treatment arsenal, though in only about 25 percent
of those with moderate to severe headache pain are these older medications
reported to exhibit any effect.

A recent clinical trial showed GelStat Migraine to be effective in 83 percent of
patients, whose migraine pain was either eliminated or arrested at the mild pain
phase by early treatment.

ABOUT GELSTAT CORPORATION

GelStat Corporation is a consumer healthcare company dedicated to the
cost-effective development and marketing of advanced OTC healthcare products.
Development efforts are focused on large markets where GelStat products can
offer improved efficacy, safety, and/or convenience over existing OTCs. The
Company's initial efforts center on developing products for migraine therapy and
to improve sleep, both multi-billion dollar global markets.

For more information, visit www.GelStat.com

Forward-Looking Statements

This press release contains "forward-looking" statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Any statement other than a
statement of historical fact should be considered a forward-looking statement.
Such forward-looking statements are based on the Company's current expectations
and involve known and unknown risks, uncertainties, or other factors which may
cause actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Risks, uncertainties
and assumptions include the possibility that the market for the sale of certain
products, or all products, may not develop as expected, or at all. Readers are
cautioned not to place undue reliance on those forward-looking statements, which
speak only as of the date hereof. The company undertakes no obligation and does
not intend to release publicly any revisions to these forward-looking statements
to reflect events or circumstances after the date hereof or to reflect
unanticipated events or developments.

Contact:

Media Inquiries:
The Carideo Group, Inc.
Tony Carideo, 612-317-2880

Investor Relations:
Insight Capital
Brock Malky, 724-453-1800

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